How to Manage Financial Anxiety & Stress (Pt. 1)

1. Focus on the Positive

Start listing the positive aspects of your money management skills. Perhaps you have a great job, are regularly socking money away in a 401k or an IRA, and have a nice emergency fund saved up. Even when things are tight or money is causing you anxiety, taking a second to focus on where you’re going right can help you stay calm and clear your head.

2. Retool Your Budget

Review. Go over your bills and expenditures, and make sure all your numbers are accurate by ensuring that receipts and bills match up with your budget.

Reduce. Check to make sure you’re in the black each month, since going into debt is generally the greatest cause of stress.

Pay Off. Create a debt payoff plan and stick to it so you have an idea of when your credit card balances, student loans, or car payments are going to be paid off – this knowledge alone can help you breathe a major sigh of relief.

3. Banish Financial Shame

When you’re feeling embarrassed about money, remember that taking the time to educate yourself and organize your finances – even if the numbers make you squirm – can set you on a healthier path for the future

4. See an Advisor

Many financial advisors offer a no-obligation, low-pressure first appointment as a way to get to know each other and consider the basics of your finances. The process is very much like seeing a therapist – but for your money.

5. Contribute to an Emergency Fund

If you haven’t started an emergency fund yet, begin with a goal of saving up just $1,000. Then, as you continue contributing, work your way up to at least six months’ worth of living expenses.

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